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My wife recently paid off our house about three years ago, and we've been trying to save some money.

We got $106,000. I'm sorry, we got about $175,000 saved up.

Cool.

And we're getting ready to purchase another house. And so I was debating, because I was going to use it for a rental,

if I should just go ahead and put the whole $175,000 down on it.

The home is about $292,000.

So it'd be, you know, over 50% down.

But what I was concerned about is whether I should be invested that much into

the one home or if I should leverage myself keep maybe 50% of that and put maybe

75,000 on one home and 75,000 on a second home and when you start talking about

rental property really when you talk about anything but when you talk about

rental property people particularly struggle with one issue here's the thing

you have to remember debt equals risk more debt equals more risk more

debt equals lower cash flow, less cash position, and more risk. So if you buy one house

with 50% down, you have less risk than if you take out eight times more debt and spread this over four houses.

Because none of them are going to cash flow then.

This one's barely going to cash flow at 50% down.

I love real estate.

I know you're full of crap.

You've never bought a rental house.

I own a bunch of them.

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